The objectives of this proposal are (1) to determine the effect of AFDC payment level on the number of children ever born to welfare recipients and (2) to test the hypothesis that the main effect of differences in AFDC payment levels is on increasing child development principally as measured by the extent of their education. These objectives will be reached by use of economic models of the child-bearing decison applied to sample survey data already collected for the National Center for Social Statistics from the welfare case load.